In the latest close session, Hasbro (HAS) was down 1.89% at $86.33. This move lagged the S&P 500's daily gain of 0.58%. Meanwhile, the Dow gained 0.05%, and the Nasdaq, a tech-heavy index, added 0.91%.
Coming into today, shares of the toy maker had lost 6.41% in the past month. In that same time, the Consumer Discretionary sector lost 0.46%, while the S&P 500 gained 4.96%.
The investment community will be paying close attention to the earnings performance of Hasbro in its upcoming release. The company is expected to report EPS of $1.2, down 7.69% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $1.05 billion, indicating a 7.54% growth compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $5.96 per share and revenue of $4.98 billion, indicating changes of +7.58% and +5.92%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Hasbro. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 3.73% upward. Hasbro currently has a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Hasbro is presently being traded at a Forward P/E ratio of 14.77. This signifies a premium in comparison to the average Forward P/E of 11.34 for its industry.
One should further note that HAS currently holds a PEG ratio of 2.17. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. By the end of yesterday's trading, the Toys - Games - Hobbies industry had an average PEG ratio of 1.76.
The Toys - Games - Hobbies industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 49, positioning it in the top 21% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Hasbro, Inc. (HAS): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).